A young gentlemen was pre-approved. While a small loan, it is significant for him since it is the very first house he has ever bought. The closing date is on the back end of November's Ides...
The supporting documentation was collected and the appraisal was ordered, yet over the weekend, he spoke to the Family Attorney. Mr. Attorney recommended that he shop around. Alas, the chap was "approved" at a local bank at an interest rate that was about a half percent lower than we quoted. So, he went that way.
Days later, meaning today, it so happens that the local bank turned him down. While getting into specifics may be a bad thing, they low-balled a legitamate rate they could offer him and their debt ratio requirements are tighter than an amateur porn star's balloon knot. (No, you didn't just write that. Yup, I did.) They turned him down.
So, we are starting over to an extent. The appraisal must be re-ordered and now we can actually send the file to Underwriting.
I'm a champion of folks shopping around, just not so late in the game.
The next time you shop, try the Family Attorney.